IPMAN Calls on FG to Revoke Fuel Import Licences as Prices Soar

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to urgently review and, if necessary, revoke the recently issued fuel import licences to certain petroleum marketers. The association argues that these licences are fueling rising fuel prices, putting pressure on foreign exchange reserves, and destabilizing Nigeria’s downstream petroleum sector.

IPMAN contends that the current fuel import policy has failed to achieve its goal of stabilizing domestic fuel prices. Instead, the association claims the import licences have led to higher pump prices, increased reliance on foreign currency, and unfair competition against locally refined petroleum products.

During an interview in Abuja, IPMAN’s National Publicity Secretary, Chinedu Ukadike, urged regulators—including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Company Limited (NNPC Ltd.)—to reassess the policy in the best interest of consumers and Nigeria’s economy.

Ukadike expressed concern that some licensed importers are proposing to sell Premium Motor Spirit (PMS) at around ₦1,350 per litre—significantly higher than the ex-depot price offered by the Dangote Petroleum Refinery. He argued that such pricing undermines the purpose of import licences, which is meant to promote market competition and stability.

He questioned the logic behind importing petroleum products at higher costs than those refined locally, emphasizing that this development exposes Nigerians to unnecessary fuel price volatility. Marketers have also reported difficulties in planning their operations due to the unpredictability caused by fluctuating import costs.

The association’s spokesperson further raised concerns about the quality of some imported fuels, alleging that certain imports may not meet Nigeria’s standards. IPMAN urged regulators to enhance quality assurance measures to ensure only compliant products are allowed into the country.

Beyond pricing, IPMAN highlighted that continued fuel importation exerts additional pressure on Nigeria’s foreign exchange reserves. Paying for imported fuel in dollars increases demand for the US currency, weakening the naira and raising overall fuel prices nationwide.

Ukadike emphasized that the current policy hampers Nigeria’s efforts to achieve energy security through domestic refining. He advocated for greater reliance on locally refined petroleum, which would reduce foreign exchange demand, stabilize fuel supply, and promote growth within Nigeria’s refining industry.

The association praised Dangote Petroleum Refinery for maintaining uninterrupted fuel supplies despite global geopolitical tensions, including conflicts involving Iran and disruptions around the Strait of Hormuz. According to IPMAN, local refining has enabled Nigeria to avoid severe fuel shortages often caused by international supply chain disruptions.

Since the refinery’s operations began, Nigeria has experienced greater stability in fuel supply, with fewer prolonged shortages that previously affected businesses and households nationwide.

IPMAN urged the government to prioritize policies that support domestic refining over expanding fuel import licences. They believe investing in local refineries would bolster Nigeria’s industrial capacity, create jobs, and improve economic resilience.

The association also called on the Presidential Committee overseeing downstream petroleum sector reforms to engage stakeholders—including Dangote Refinery—to develop practical measures for maintaining affordable fuel prices and ensuring adequate supply.

IPMAN advocates for sufficient local refined petroleum to meet domestic demand, with surplus exports generating foreign exchange and strengthening Nigeria’s balance of payments. They stress that a robust refining industry would shield Nigeria from global oil market volatility and promote long-term energy security.

Finally, IPMAN appealed to the Federal Government to review fuel import licence approvals urgently, adopting policies that promote local refining, stabilize fuel prices, and reduce the burden of rising fuel costs on Nigerians. They assert that strengthening domestic refining remains Nigeria’s most sustainable strategy for affordable fuel, economic stability, and energy security.